· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Wired or enjoy below:
🗞️ Driving the news: Hurricane Helene has devastated parts of North Carolina, exposing flaws in the US insurance system
• Many homeowners won't receive compensation for flooding or landslides due to gaps in insurance coverage, which has worsened due to outdated policies and insufficient flood insurance uptake
🔭 The context: The National Flood Insurance Program (NFIP) provides most flood insurance, but only 4% of US homeowners are enrolled
• Private insurers typically avoid covering floods or earth movements like landslides, leaving many vulnerable after storms like Helene
• North Carolina homeowners face rising insurance premiums, part of a national trend
🌍 Why it matters for the planet: Climate change is intensifying natural disasters, yet insurance systems remain outdated, leaving residents increasingly unprotected against extreme weather events
• This amplifies financial losses for those living in disaster-prone areas
⏭️ What's next: The insurance market is grappling with rising costs and political pressure to reform the NFIP, but meaningful changes remain uncertain
• In the meantime, more frequent and severe storms could leave more homeowners exposed
💬 One quote: “So many people are just not going to have coverage.” — David Marlett, Brantley Risk & Insurance Center
📈 One stat: Less than 2.5% of homeowners in some Helene-impacted areas of Appalachia are covered by flood insurance
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